Documentation That You Need to Furnish For a Personal Loan

While applying for a personal loan, you will be asked a few questions about your finances. Indeed, the whole process is quite transparent, efficient and quite easy so that you can easily acknowledge what you are getting and how much you will have to pay. Once you have completed the application, you will be asked to show necessary documents, such as –

Income proof -The lenders might ask you to show any of the following:

• Recent bank statement displaying your last three consecutive income deposits
• Current payslip showing your annual income or last three consecutive payslips
• An original and signed letter from your employer confirming your income details

Current address proof -The lenders can also ask for the confirmation of your current address. You can show any of the following:

• Recent utility bill
• Property sale and purchase agreement 
• Insurance policy document
• Unexpired rental or tenancy agreement 

Banking history - You might need your 3 months banking history including online statements from the last 3 months.

Documents required for the self-employed -

• Applicant’s proof of identity- It might include your voter ID card, passport, pan card or a driving license
• Residence proof-It can be your ration card, passport or utility bill
• Age proof- Your age can be confirmed through Voter ID card, passport, pan card or driving license
• Office address- It can be your property documents, maintenance bills or electricity bills
• Income proof- They will be asked to show latest 2 years income tax returns, which includes income computation and balance sheet.

Documents required for senior citizens -

• Identity proof- They will be asked to show their passport, driving license, Voter ID card or PAN card
• Residential address proof- They can show their license, registered rent agreement or utility bill
• Age proof- Pan card or passport
• Proof of income -They can show their pension returns or bank statement

Thus, you need to keep all your documents handy if you want to successfully apply for personal loan.

Now Bad Credits Will No Longer Be a Stumbling Block to Your Personal Loan Approval

Everyone needs a loan once in a lifetime, which may be a house repair or a new car. Even if you are a business owner, you need loan for small businesses. However, there are chances that your loan might not be approved in case you have a bad credit history. Bad credit refers to failure in keeping up your credit agreement and an inability to get your loan approved by the bank. 

In cases of bad credit, the lenders are not willing to approve your personal loans due to your credit history; they have made your perception of a defaulter. And if by chance your loan has been approved, you will have to pay higher interest as compared to the customers with good credit history. Sometimes, the people with bad credit are in an urgent need for personal loans due to financial crisis.

There are certain tips through which you can get your loan approved even with bad credits:

• Get aware about your credit score - You can easily analyse if you have bad credits. If you have missed your payments or you have huge credit card balances, then you can make an idea that you have bad credit history. Checking your credit score is the best option to calculate your credit history. If your credit score is below 620, you surely have bad credit score.
• Bad credits can be fixed easily – If you have missed your payments, it will affect your credit score. Pay off all your payments immediately to improve it. In case of any issues regarding the payment, you can also contact the credit card issuer. He might re-age your account in such a way that it shows that payments have always been done on time.
• Refrain from getting any new credit card –While improving your bad credits, you must avoid any new application for credit card issue, as it will surely affect your credit score.

Apart from all these aforementioned tips, you need to be quite patient as improving the bad credit history is not a cakewalk. Keep doing your monthly payments on time and you will see a drastic improvement in your credit score. Thus, it is not a big deal to Apply for a Loan with Bad Credit.